GNER 'astonished' at rail ruling

TRAIN operator GNER is to face a second competitor on its lucrative train routes between King's Cross and the North-East.

The Office of the Rail Regulator today granted a licence to privately-owned Grand Central to run services from Sunderland through Yorkshire to London from next year. It has also granted further services to First Group-owner Hull Trains on its King's Cross-Hull route.

GNER, which has lobbied hard to prevent further competition on its network, has also been told by the regulator that it will not be granted the extra services it has applied for.

GNER said it was 'extremely puzzled' at the ORR's decision to reject its application to increase services between Leeds and London from 53 to 65 per weekday.

Spokesman Richard Allan said: 'It is astonishing that the ORR has rejected GNER's additional Leeds-London services as that is what the Government, in awarding the East Coast franchise, contracted GNER to deliver. The ORR's own economic analysis concluded that the highest level of economic benefits was delivered by GNER's proposed services. GNER is reviewing all its options.'

The regulator said the promotion of competition in general on the national network would bring 'significant benefits to passengers'.